Reuters Reports the Justice Department Is Examining Nvidia's 12.9 Billion Dollar Hugging Face Acquisition
$NVDA - US DOJ EXAMINING NVIDIA ACQUISITION OF AI PLATFORM HUGGING FACE, TWO PEOPLE SAY
Context
Hugging Face is where much of the world shares open models and datasets, so antitrust scrutiny of Nvidia owning it could shape who controls a key distribution point for AI.
Nvidia agreed in September to buy Hugging Face, the platform where developers host, find and test AI models and datasets, in a deal Reuters values at 12.93 billion dollars and expects to close in the first half of 2027. The Justice Department has been examining Nvidia's conduct for years. The lead post is a headline relay from the *Walter Bloomberg account, which is not affiliated with Bloomberg News; the first hand reporting is from Reuters.
Deep dive
Reuters reported on Wednesday that the US Department of Justice has made inquiries about how Nvidia's 12.93 billion dollar deal to buy Hugging Face would affect competition in artificial intelligence. The report cites two people familiar with the matter. The headline spread on X through the *Walter Bloomberg account, which relays market news.
According to Reuters, officials have asked whether the deal would let Nvidia capture a fundamental distribution point for AI, how Nvidia might use the platform to harm rivals or gain leverage, and about Hugging Face's competitors. Reuters says the questions sit within a broader, years long examination of Nvidia's acquisitions, investments, sales practices and whether it has pressured customers, including its Groq licensing deal and its purchase of Run:ai.
CNBC said it confirmed the inquiry with a person familiar with the matter. Nvidia declined to comment to Reuters, and Hugging Face did not respond. A DOJ spokesperson declined to comment on any matters before the department. Reuters notes that government investigations are not evidence of wrongdoing and do not necessarily lead to lawsuits.
Nvidia has said Hugging Face would keep supporting a range of chip, cloud and AI providers.
What to expect next
Watch whether the Justice Department issues a formal second request for information, which would signal a deeper merger review, and whether Nvidia offers commitments to keep Hugging Face neutral across hardware and cloud providers. Developers and rival chipmakers may weigh in. The deal is expected to close in the first half of 2027, so any challenge or settlement would most likely come before then.